This article first appeared on GuruFocus.
Micron Technology (MU, Financials), is facing fresh scrutiny from investor Michael Burry, who said he has increased short positions in the memory-chip maker, Nebius Group , Palantir Technologies and the iShares Semiconductor ETF.
Burry said in a Sept. 22 Substack post that he added to the bearish positions in some size as he questions the durability of the current semiconductor and artificial intelligence boom.
A key part of his argument centers on memory supply. Burry highlighted comments from Acer CEO Jason Chen, who challenged expectations for a prolonged shortage. Chen said some components, including LPDDR5 and DDR5 9600, remain tight, while DDR4 is facing oversupply with more sellers than buyers.
Burry said those comments align with his view that rising chip production could eventually put pressure on memory prices. That matters for Micron because the company has benefited from strong demand for memory used in AI infrastructure.
At the same time, Burry added to positions in QXO, Build-A-Bear Workshop, Sprouts Farmers Market, Birkenstock and MercadoLibre, saying the stocks had corrected tremendously and appeared attractive to him.
Burry also criticized the Nasdaq-100 as historically overvalued and top-heavy, adding another layer to his broader market concerns.
The next catalyst is Micron’s upcoming results, which should provide a clearer read on memory pricing, demand and the pace at which new supply is entering the market.